The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) continued its strong run for the week, trading nearly 1% higher today. However, the share prices of the following four ASX shares got crunched.
- Cover-More Group Ltd (ASX: CVO) – down 14%
Travel insurance provider, Cover-More Group, saw its shares tank today following the release of a trading update. In a note to the ASX, the insurer said it had achieved strong sales growth in the first half of its 2016 financial year, but detailed a 16.4% fall in operating profit year over year. One-off costs, higher claims, investments, and a decline in the Assistance business resulted in the profit fall. Nevertheless, the company says its business model remains resilient.
- Bradken Limited (ASX: BKN) – down 10%
Shares of mining services business, Bradken, fell into double-digit losses today after updating the market on its half-yearly profit performance. For the six-month period to 31 December 2015, the company reported an 18% fall in revenue and 82% decline in profit. Acting Bradken managing director, Phil Arnall, described it as a “trying first half” and said the group remains focused on its strategy of generating more cash to pay down debt. Clearly, the market was spooked by the results update.
- Newcrest Mining Limited (ASX: NCM) – down 6%
Newcrest Mining, Australia’s largest gold miner, had its shares sold down today despite some analysts moving to increase their price targets on the company. According to Dow Jones Newswires, two major investment banks upped their price targets on the business. The raised target prices and selloff comes just a day after the miner released its half-year results for the period ended December 2015, revealing a net profit of just $US81 million – down from $US180 million last year – and no dividend.
- Commonwealth Bank of Australia (ASX: CBA) – down 2.6%
On a day when much of the S&P/ASX 200 was trading firmly higher, shares of Commonwealth Bank of Australia traded lower. The downwards price movement was likely a result of the bank’s shares going “ex-dividend”. That means, investors on Commonwealth Bank’s share registry as of last night will receive its upcoming dividend payment.
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